Wednesday, February 24, 2010

Another Bank Warning Sign: Citi Warns Customers It May Limit Withdrawals

Another reason to consider keeping your savings (assuming you have any) in a personal safe or under your mattress, is this note that Citigroup (of course, known to you and me as Citibank) has sent to its customers nationwide:

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change"

As it turns out, the warning was intended only for Texas customers (why limited to Texas, I don't know) but was sent out nationwide to all customers due to an error. In any case, this is crazy. Why would a bank restrict you from your own money? Also, why would they warn their customers that the value they're storing in the bank is gone? I am fearing a bank holiday in the next few years, at most.

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